IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i6p4901-d1092636.html
   My bibliography  Save this article

The Effect of Performance on the Sustainability of Coffee Farmers’ Cooperatives in the Industrial Revolution 4.0 in West Java Indonesia

Author

Listed:
  • Wini Fetia Wardhiani

    (Doctorate Program of Agricultural Science, Faculty of Agriculture, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Tuti Karyani

    (Department of Agri Socio-Economics, Faculty of Agriculture, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Iwan Setiawan

    (Department of Agri Socio-Economics, Faculty of Agriculture, Universitas Padjadjaran, Sumedang 45363, Indonesia)

  • Ery Supriyadi Rustidja

    (Faculty of Science and Technology, IKOPIN University, Sumedang 45363, Indonesia)

Abstract

This research evaluates the effect the industrial revolution era 4.0 has had on the performance and sustainability of coffee farmer cooperatives, especially in the West Java region, considering that West Java is a coffee center area that is starting to be taken into account in Indonesia and the world in general, this is evidenced by the increasing number of farmer cooperatives coffee in the West Java region. One of the most monumental effects of the industrial revolution 1.0 was the birth of the British cooperative in Rochdale, the world’s first modern cooperative. The industry continues to develop, cooperatives continue to adapt and try to continue to develop in accordance with technological advances, especially now that the industrial revolution 4.0 has entered, which emphasizes information technology, especially the use of the internet. However, there has been no previous research examining the use of information technology in coffee farmer cooperatives, especially in the era of the industrial revolution 4.0, even though this information technology is very important in the development of cooperatives today. Quantitative descriptive method with SEM analysis was used to identify the effect of cooperative capability on the performance and sustainability of cooperatives in several coffee cooperatives in West Java. The study’s results found that the power of the cooperative did not significantly affect the performance of the Coffee Cooperative. Still, the capability of the cooperative had a positive and significant effect on the sustainability of the Coffee Cooperative. At the same time, the performance of the cooperative had a positive and significant impact on the sustainability of the coffee cooperative. The ability of cooperatives has a positive and significant effect on sustainability mediated by the performance of the Coffee Cooperative in the Industrial Revolution 4.0 era. This study recommends increasing the capabilities of cooperatives in membership, management, and business models to become sustainable cooperatives based on information technology to achieve added value from market-driven coffee products. The results of the study show that the respondents perceive that the cooperative’s performance has a positive effect on their sustainability. Improving the performance of cooperatives in terms of (1) productivity, (2) effectiveness, (3) quality, and (4) achievement can be regarded as having a direct impact on the Coffee Cooperative’s long-term viability. The industrial revolution in the agricultural sector is facing demographic challenges (ageing), so intelligent technology, artificial intelligence, big data, and augmented reality are strategic choices. The application of information technology has a direct or indirect positive impact on Indonesia’s agricultural sector. Cooperatives in coffee agribusiness is also increasingly needed to respond to market demand by applying Information and Communication Technology (ICT).

Suggested Citation

  • Wini Fetia Wardhiani & Tuti Karyani & Iwan Setiawan & Ery Supriyadi Rustidja, 2023. "The Effect of Performance on the Sustainability of Coffee Farmers’ Cooperatives in the Industrial Revolution 4.0 in West Java Indonesia," Sustainability, MDPI, vol. 15(6), pages 1-10, March.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:6:p:4901-:d:1092636
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/6/4901/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/6/4901/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ragil Haryanto & Imam Buchori & Nany Yuliastuti & Ibnu Saleh & Agung Sugiri & Bagus Nuari & Nisriena Rachmi Putri, 2020. "Preparedness to Implement a Spatial Plan: The Impact of the Land Cooperative in Central Bangka Regency," Sustainability, MDPI, vol. 12(24), pages 1-19, December.
    2. Miklós Pakurár & Hossam Haddad & János Nagy & József Popp & Judit Oláh, 2019. "The Service Quality Dimensions that Affect Customer Satisfaction in the Jordanian Banking Sector," Sustainability, MDPI, vol. 11(4), pages 1-24, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yuhan Ge & Qing Yuan & Yaxi Wang & Keunsoo Park, 2021. "The Structural Relationship among Perceived Service Quality, Perceived Value, and Customer Satisfaction-Focused on Starbucks Reserve Coffee Shops in Shanghai, China," Sustainability, MDPI, vol. 13(15), pages 1-19, August.
    2. Faisal Mohammed O. Almaslukh & Haliyana Khalid & Alaa Mahdi Sahi, 2022. "The Impact of Internal Marketing Practices on Employees’ Job Satisfaction during the COVID-19 Pandemic: The Case of the Saudi Arabian Banking Sector," Sustainability, MDPI, vol. 14(15), pages 1-15, July.
    3. Jiao Zhang & Qian Wang & Yiping Xia & Katsunori Furuya, 2022. "Knowledge Map of Spatial Planning and Sustainable Development: A Visual Analysis Using CiteSpace," Land, MDPI, vol. 11(3), pages 1-24, February.
    4. Most. Nirufer Yesmin & Saiful Hoque & Md. Alamgir Hossain & Nusrat Jahan & Yuantao Fang & Renhong Wu & Md. Jahangir Alam, 2023. "SERVQUAL to Determine Relationship Quality and Behavioral Intentions: An SEM Approach in Retail Banking Service," Sustainability, MDPI, vol. 15(8), pages 1-15, April.
    5. Jee-Won Kang & Young Namkung, 2022. "Measuring the Service Quality of Fresh Food Delivery Platforms: Development and Validation of the “Food PlatQual” Scale," Sustainability, MDPI, vol. 14(10), pages 1-19, May.
    6. S. Ananda & Raghavendra Prasanna Kumar & Dharmendra Singh, 2023. "A mediation analysis of perceived service quality, customer satisfaction and customer engagement in the banking sector," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(3), pages 570-584, September.
    7. Ortal FALKOVITCH & Carmit Moshe ROZENTAL, 2019. "The Digitalization Of Banking In Israel And Its Effect On Customer Satisfaction. A Qualitative Study From The Perspective Of Managers At Two Israeli Banks," Network Intelligence Studies, Romanian Foundation for Business Intelligence, Editorial Department, issue 14, pages 143-154, December.
    8. Ben K. Mburu & Peter Koome & David Gichuhi, 2020. "Influence of employer-employee relationships on service quality in the hospitality industry in Nakuru County, Kenya," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(5), pages 166-171, September.
    9. Agung Budi Prasetio & Burhanuddin bin Mohd Aboobaider & Asmala bin Ahmad, 2022. "Organizational Ambidexterity as an Outcome of Quality Dimensions and Triple Helix: The Role of Technology Readiness and User Satisfaction," Sustainability, MDPI, vol. 14(21), pages 1-23, October.
    10. Ibrahim Adow Aden & Dr. Janet Muthimi, 2022. "Explicating the Impact of Customer Retention on Organizational Resilience: An Empirical Study of Selected Insurance Companies in Kenya," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(10), pages 582-592, October.
    11. Esraa Esam Alharasis & Hossam Haddad & Maha Shehadeh & Ahmad Saleem Tarawneh, 2022. "Abnormal Monitoring Costs Charged for Auditing Fair Value Model: Evidence from Jordanian Finance Industry," Sustainability, MDPI, vol. 14(6), pages 1-21, March.
    12. Nikolina Ljepava & Aleksandar Jovanović & Aleksandar Aleksić, 2023. "Industrial Application of the ANFIS Algorithm—Customer Satisfaction Assessment in the Dairy Industry," Mathematics, MDPI, vol. 11(19), pages 1-22, October.
    13. Stela CIOBU & Ion CARA, 2022. "Effects Of Internal Control System On Credit Risk And Financial Performance Of The Moldovan Banks," Contemporary Economy Journal, Constantin Brancoveanu University, vol. 7(2), pages 41-54.
    14. Garima Sharma & Pravin Kumar, 2021. "An Analysis of Causal Relationships Among the Factors Affecting the Performance of a Service Organization," SAGE Open, , vol. 11(1), pages 21582440219, March.
    15. Nemer Aburumman & Asisa Nieto, 2019. "The Effect Of Products Attributes Customer Satisfaction On Brand Loyalty In The Electronic Appliances Industry: Case Of Jordan," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 4(Special), pages 39-51, May.
    16. Baljinder Kaur & Sood Kiran & Simon Grima & Ramona Rupeika-Apoga, 2021. "Digital Banking in Northern India: The Risks on Customer Satisfaction," Risks, MDPI, vol. 9(11), pages 1-18, November.
    17. Zhang, Qi & Ariffin, Shaizatulaqma Kamalul & Richardson, Christopher & Wang, Yuling, 2023. "Influencing factors of customer loyalty in mobile payment: A consumption value perspective and the role of alternative attractiveness," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    18. Nur Sabahiah Abdul Sukor & Surachai Airak & Sitti Asmah Hassan, 2021. "“More Than a Free Bus Ride”—Exploring Young Adults’ Perceptions of Free Bus Services Using a Qualitative Approach: A Case Study of Penang, Malaysia," Sustainability, MDPI, vol. 13(6), pages 1-18, March.
    19. Jinsoo Hwang & Seong Ok Lyu & Sun-Bai Cho, 2019. "In-Flight Casinos, Is It Really a Nonsensical Idea? An Exploratory Approach Using Different Choice Experiments," Sustainability, MDPI, vol. 11(11), pages 1-16, May.
    20. Michael Owusu-Kyei & Yusheng Kong & Michael Owusu Akomeah & Stephen Owusu Afriyie, 2023. "Assessing the Influence of Total Quality Management on Customer Satisfaction in the Telecom Industry: A TQM–SERVQUAL Perspective," Businesses, MDPI, vol. 3(2), pages 1-21, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:6:p:4901-:d:1092636. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.